6 Insights into CBE's new rules for overseas credit card usage

In response to Egypt's ongoing foreign currency challenges and the need for stricter financial oversight, the Central Bank of Egypt (CBE) has implemented new regulations governing the use of credit cards for international transactions. These regulations, introduced against a backdrop of economic uncertainty, aim to enhance transparency and accountability while addressing the pressing need to manage foreign exchange reserves effectively. Let's explore the key insights into these regulations and their implications for credit card users in Egypt.

1. Strict Documentation Requirements: Customers failing to provide documented evidence of credit card use abroad within 90 days face suspension and listing on the i-Score platform, managed by the Egyptian Credit Bureau.

2. Penalties for Non-Compliance: Those flagged by i-Score's daily report encounter restrictions on international card usage, rendering them ineligible for new cards or transactions abroad.

3. Timely Reminders: The CBE emphasizes the importance of timely document submission, sending text message reminders to customers before their cards are suspended.

4. Regulatory Framework: These measures align with the CBE's regulatory framework issued in October 2023, aimed at managing credit card use for international travel amidst Egypt's foreign currency shortage.

5. Financial Context: Egypt has faced a foreign currency shortage for the past two years, leading to fixed exchange rates with the dollar and reductions in foreign currency credit card spending limits in some banks.

6. Impact on Card Limits: In response to the currency shortage, certain Egyptian banks have reduced international purchase limits on credit cards, reflecting the broader economic challenges facing the country.